Checkout this project which is now being more widely deployed to prevent a lot of these attacks:
Good overview of threats.
> TORAUTHPASSWORD - Password which is used for your Tor Control Port Authentication with NGINX. Alphanumeric without spaces (example: passwordIcanremembertyping)
> KEY - Alphanumeric Key for the shared front session key. Random between 64-128 would do fine. (example: isthis64charactorsalreadyicantbelieveitwowsocoolwaitnotyetohdarn)
I would definitely see this under the umbrella of various secret agencies, especially those with an "offensive" position in cyber-warfare.
You won't ever see any of this documented due to the "parallel construction" method. And for what it's worth, almost all of the Wikipedia content on that one (https://en.wikipedia.org/wiki/Parallel_construction) deals with DEA usage of this.
Besides, the general way of "hacking services to distribute malware" has already been done, most famously in 2013 when the feds burned a Firefox 0-day to unmask a child porn ring: https://krebsonsecurity.com/2013/08/firefox-zero-day-used-in...
https://en.wikipedia.org/wiki/Network_Investigative_Techniqu...
https://www.eff.org/pages/playpen-cases-frequently-asked-que...
A DoS attack is nothing to these people. The only difference between them and cybercriminals is the fact the law legitimizes their work.
1. purchase VPS products at a bunch of providers who accept bitcoin / crypto
2. ddos your target
3. see if you notice any of your hosted boxes go down
4. once you know the provider pop them (they're usually running some shitty WHMCS or similar homebrew solution, old Cpanel, etc. etc. and they're almost always resellers and amateurs) and move laterally to your target
When the feds do it against online drug markets (and they have been for years) they have the bonus of having decent network insight / view by working with backbone providers
There is just no way to hide multi-Gb of traffic